As the Federal Trade Commission Currently Interprets the Herfindahl-Hirschman Index

question 165

Multiple Choice

As the Federal Trade Commission currently interprets the Herfindahl-Hirschman index (HHI) , an industry is considered to be highly concentrated if the HHI value is above

• A) 100.
• B) 1,000.
• C) 2,500.
• D) 5,000.

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Definitions:

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, often referred to as the "I-knew-it-all-along" phenomenon.

Self-fulfilling Prophesy

A prediction that directly or indirectly causes itself to become true, by the very terms of the prophecy itself, due to positive feedback between belief and behavior.

Rationalization

A defense mechanism where logical, acceptable explanations are given for behaviors that are actually driven by subconscious motives.

Thematic Apperception Test

A projective psychological test that asks respondents to tell stories about ambiguous pictures, aimed at uncovering their underlying thoughts, feelings, and attitudes.